HUANENG LANCANG RIVER HYDROPOWER (600025) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 13.15 billion, up 1.45% year-over-year, while net profit attributable to shareholders was RMB 4.38 billion, down 5.05% year-over-year due to lower average settlement prices and higher depreciation from new projects.

• Power generation hit a record 54.85 TWh, up 3.98% year-over-year, driven by expanded installed capacity and new clean energy projects.

• The company maintained strong operational safety, zero major incidents, and advanced green development initiatives, including significant new wind, solar, and storage projects.

Financial highlights

• Operating income: RMB 13.15 billion (+1.45% YoY); total profit: RMB 5.56 billion (-3.91% YoY); net profit attributable to shareholders: RMB 4.38 billion (-5.05% YoY).

• Cash flow from operations: RMB 9.09 billion (+5.5% YoY); basic and diluted EPS: RMB 0.23 (-8% YoY).

• Gross margin impacted by lower average settlement prices and increased depreciation.

• Non-recurring profit: RMB 42.25 million, mainly from asset disposals and government subsidies.

Outlook and guidance

• The company expects continued growth in national electricity demand (5–6% YoY for H2 2026) and stable power supply-demand balance.

• Focus remains on expanding clean energy capacity, cost control, and technological innovation.